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CBIZ Inc (NYSE:CBZ)
Gross Profit
$82.3 Mil (TTM As of Jun. 2014)

CBIZ Inc's gross profit for the three months ended in Jun. 2014 was $18.6 Mil. CBIZ Inc's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $82.3 Mil.

Gross Margin is calculated as gross profit divided by its revenue. CBIZ Inc's gross profit for the three months ended in Jun. 2014 was $18.6 Mil. CBIZ Inc's revenue for the three months ended in Jun. 2014 was $180.9 Mil. Therefore, CBIZ Inc's Gross Margin for the quarter that ended in Jun. 2014 was 10.27%.

CBIZ Inc had a gross margin of 10.27% for the quarter that ended in Jun. 2014 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of CBIZ Inc was 100.00%. The lowest was 10.99%. And the median was 12.72%.

Warning Sign:

CBIZ Inc gross margin has been in long term decline. The average rate of decline per year is -2.7%.


Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

CBIZ Inc's Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=692.033 - 608.73
=83.3

CBIZ Inc's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=180.885 - 162.307
=18.6

CBIZ Inc Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was 17.904 (Sep. 2013 ) + 3.079 (Dec. 2013 ) + 42.721 (Mar. 2014 ) + 18.578 (Jun. 2014 ) = $82.3 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

CBIZ Inc's Gross Margin for the quarter that ended in Jun. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=18.6 / 180.885
=10.27 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

CBIZ Inc had a gross margin of 10.27% for the quarter that ended in Jun. 2014 => No sustainable competitive advantage


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

CBIZ Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 65.264.671.080.197.888.286.189.571.183.3

CBIZ Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Gross_Profit 40.818.212.62.241.821.117.93.142.718.6
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